Federal government to pull plug on NewMIC funding, centre to close: sources

The New Media Innovation Centre (NewMIC) in Vancouver is closing as the federal government appears set to pull the plug on funding, say sources including some close to the situation. The institution’s head, Shahid Hussain, will say only that he will have further information by the end of the weekend. Western Economic Diversification Canada (WED), the institution’s main federal funding body, will only say that its agreement with NewMIC is subject to confidentiality rules, though information may be forthcoming in the wake of concrete developments. Information from several people, however, says that the federal agency has chosen not to renew funding on the eve of a first three-year round coming to a close. The facility has been a bright spot in the new media sector with $22 million in funding over five years from partners including WED, Sony Corp. of America, IBM, Electronic Arts, Telus Corp., TRLabs and Nortel Networks Corp. It has been involved in several initiatives, including as a funding partner, such as the WestGrid broadband computing project and, recently, with the Banff New Media Institute studying wireless technologies and interfaces (CNM, May 15/03). The past year-and-a-half has seen numerous announcements regarding new industry affiliate members, though product announcements that were to have been the focus of the government funding have been few and far between. Late in the summer of 2002, New Media BC took up residence in NewMIC’s downtown Vancouver facility and it was announced that NewMIC would receive $828,000 in further funding for its immersive media laboratory (CNM, Nov. 29/01) and $750,000 in new funding for a human computer interaction lab, now up-and-running, from WED. That’s in addition to an initial $8 million in seed funding from WED and the B.C. provincial government (CNM, March 8/01). New Media BC confirms that it has moved out of the NewMIC facility to re-locate with previous landlord, B.C. Film. Questions are now surfacing about the management of the facility, and fingers of blame are being pointed. Sources have indicated to Canadian NEW MEDIA that the centre may not have been effective in creating new commercial products in its incubator, leading to a widespread hesitancy on the part of SMEs to join with NewMIC. Other questions are being raised about the willingness of the board of directors to make a strong commitment to the facility. Hints are also being dropped by sources that TRLabs may try to revive NewMIC, possibly by taking over its management, taking over its facilities, or waiting until NewMIC has disbanded and then applying the TRLabs model in new facility in Vancouver. Since 1987, WED, now under Secretary of State Stephen Owen, has pumped $2.7 billion into the Western Canadian economy. WED is a part of the Industry Canada portfolio. If the speculation is true and WED is to axe funding to NewMIC, the centre may be a victim of changing priorities in the government as Paul Martin is set to become prime minister. Martin’s public commitment to greater funding for cities is well known and NewMIC funding might be shifted to urban renewal programs. In February, Owen told the House of Commons: "With respect to Western Economic Diversification, this budget and the strength of our economy has allowed the Western Economic Diversification budget to be stabilized over the next four years. This will allow me as minister to enter into western economic partnership agreements with each of the four western provinces whose premiers have all indicated their desire to enter into these multi-year agreements for the economic diversification and development of the western economy, as well as urban development agreements and northern provincial development agreements."

Federal government to pull plug on NewMIC funding, centre to close: sources

News | 11/21/2003 5:00 am EST

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